National Capital Territory of Delhi Act 2019

Owing to migration in the past few years, Delhi has become home to lakhs of people who live in hundreds of residential colonies that have been declared unauthorized by the Delhi Development Authority (DDA). The ownership of properties in such unauthorized colonies have been transferred several times through registered or unregistered or notarized Power of Attorney, Will, possession letter, sale agreement and payment of consideration and stamp duty on these transactions have never been paid. The residents of such colonies possess no rights of ownership, transfer or mortgage and have no title documents in respect to such properties. To grant these rights to the residents, the Parliament of India has passed the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Act, 2019. 

The issue of rights of residents living in unauthorized colonies was brought forth in the case of Suraj Lamp & Industries (P) Ltd. vs. State of Haryana & others. The Supreme Court held that sale agreement/general Power of Attorney or will transactions are neither ‘transfers’ or ‘sales’ nor can such transactions be treated as completed transfers or conveyances. These transactions can be treated as an existing agreement of sale. The Act has been passed keeping in consideration the socio-economic conditions of the residents of unauthorized colonies. It confers the rights of ownership, transfer or mortgage to the residents based on Power of Attorney, Sale Agreement, Will, Possession Letter and other documents. The object of the Act is to facilitate development to improve the infrastructure of such colonies while providing the residents with a better quality of life with basic civil and social amenities. 40 Lakhs residents living in 1731 unauthorised colonies will be given property rights under this Act. 

Features of the Act

1.    Definition- the Act defines ‘resident’ as a person having physical possession of property based on registered sale deed, sale agreement, Power of Attorney, Will or possession letter or documents serving as evidence of payment in respect of immovable property in unauthorized colonies. Resident includes legal heirs but not tenant, licensee or permissive user.

‘Unauthorised Colony’ is defined as a colony or development comprising of a contiguous area with no approval of layout plan or building plans. 

2.    Recognition of Property rights- The Act recognizes property rights of residents of unauthorized colonies and allows the central government to regularize transactions of immovable properties based on Power of Attorney, Sale Agreement, Will, Possession Letter, or an evidence of payment held by residents of unauthorized colonies and fix charges on payment of transactions of such immovable properties. According to the Act, residents of unauthorized colonies having registered on un-registered or notarized Power of Attorney, Sale Agreement, Will, Possession Letter, or evidence of payment shall possess the rights of ownership, transfer or mortgage through conveyance deed or authorization slip.

3.    Charges- As per the Act, residents of unauthorised colonies shall not have to pay stamp duty or registration charges on any previous sale transactions.

Conclusion:

The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019 was introduced in the Lok Sabha by the Union Housing and Urban Affairs Minister Hardeep Singh Puri with a view to recognize the property rights of residents living in unauthorized colonies of Delhi.

Author:

eStartIndia Team